Tandem Diabetes Care (NASDAQ:TNDM) Issues Quarterly Earnings Results

Tandem Diabetes Care (NASDAQ:TNDM) posted its quarterly earnings results on Thursday. The medical device company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.04, FiscalAI reports. Tandem Diabetes Care had a negative return on equity of 70.01% and a negative net margin of 20.17%.The company had revenue of $290.38 million for the quarter, compared to analysts’ expectations of $277.14 million. During the same quarter in the prior year, the company earned $0.01 earnings per share. The firm’s revenue was up 15.1% on a year-over-year basis.

Here are the key takeaways from Tandem Diabetes Care’s conference call:

• Company reported a record 2025 — surpassing $1 billion in sales with Q4 at $290M (+15% YoY), improved profitability (FY gross margin 54%, Q4 gross margin 58%), first positive operating margin since 2021, adjusted EBITDA 11% in Q4, and nearly $300M in cash with FCF generation in Q3–Q4.
• Tandem is shifting to a pay-as-you-go pharmacy model that will create meaningful near-term revenue headwinds in 2026 (company estimates $85–95M total headwinds, ~$70–80M U.S.), moderating reported sales growth even as pump shipments are expected to increase 10–11% in the U.S.
• Product roadmap and near-term launches are catalytic — Control‑IQ+ expanded indications, FreeStyle Libre 3 Plus and Dexcom 15‑day integrations, three Q2 product launches (including scaled Mobi OUS), and a planned 510(k) for Mobi Tubeless (file in Q2, targeted H2 launch) plus a pivotal trial toward a fully closed‑loop FDA filing in 2027.
• International strategy is transitioning to direct operations (UK, Switzerland, Austria now live) with a playbook to expand — management expects long‑term ASP premiums (~30%) but flagged a ~$15M 2026 destocking/buyback headwind and guidance of $335–340M in international sales for 2026.

Tandem Diabetes Care Stock Performance

TNDM stock opened at $24.57 on Friday. The firm has a 50 day simple moving average of $20.91 and a 200 day simple moving average of $17.01. Tandem Diabetes Care has a 52 week low of $9.98 and a 52 week high of $35.12. The stock has a market cap of $1.67 billion, a P/E ratio of -8.00 and a beta of 1.68. The company has a debt-to-equity ratio of 2.33, a quick ratio of 1.90 and a current ratio of 2.44.

Institutional Investors Weigh In On Tandem Diabetes Care

A number of institutional investors have recently modified their holdings of the stock. Freestone Grove Partners LP purchased a new position in shares of Tandem Diabetes Care during the 3rd quarter valued at $22,706,000. Goldman Sachs Group Inc. boosted its position in Tandem Diabetes Care by 17.6% during the fourth quarter. Goldman Sachs Group Inc. now owns 1,683,400 shares of the medical device company’s stock valued at $37,001,000 after purchasing an additional 252,028 shares during the last quarter. Jacobs Levy Equity Management Inc. grew its stake in Tandem Diabetes Care by 11.6% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,653,708 shares of the medical device company’s stock valued at $36,349,000 after purchasing an additional 171,755 shares in the last quarter. Geode Capital Management LLC grew its stake in Tandem Diabetes Care by 3.2% in the fourth quarter. Geode Capital Management LLC now owns 1,649,383 shares of the medical device company’s stock valued at $36,260,000 after purchasing an additional 51,102 shares in the last quarter. Finally, First Light Asset Management LLC acquired a new position in Tandem Diabetes Care in the 4th quarter worth about $23,947,000.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the company. Weiss Ratings restated a “sell (e+)” rating on shares of Tandem Diabetes Care in a report on Wednesday, January 21st. TD Cowen began coverage on Tandem Diabetes Care in a research report on Tuesday, January 27th. They issued a “buy” rating and a $25.00 price target for the company. Royal Bank Of Canada reissued an “outperform” rating and issued a $30.00 price target on shares of Tandem Diabetes Care in a research note on Wednesday, December 17th. UBS Group restated a “neutral” rating and set a $22.00 price objective (up previously from $17.00) on shares of Tandem Diabetes Care in a report on Friday. Finally, Wells Fargo & Company upped their price objective on shares of Tandem Diabetes Care from $13.00 to $14.00 and gave the company an “equal weight” rating in a research note on Friday, November 7th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Tandem Diabetes Care presently has an average rating of “Hold” and a consensus price target of $25.50.

Key Headlines Impacting Tandem Diabetes Care

Here are the key news stories impacting Tandem Diabetes Care this week:

• Positive Sentiment: Q4 beat on top- and bottom-line metrics — revenue of $290.4M (vs. consensus ~$277M), EPS loss narrower than expected and record quarterly sales and pump shipments; management highlighted margin expansion. Tandem Diabetes Care Announces Fourth Quarter and Full Year 2025 Financial Results and 2026 Financial Guidance
• Positive Sentiment: Market reaction: shares surged intraday after the results and outlook, reflecting investor enthusiasm for the beat, margin momentum and sales growth. Tandem Diabetes Shares Rise 33% On Earnings Beat, Margin Expansion, Growth Outlook
• Positive Sentiment: Analyst upgrades/raise: BofA moved TNDM from Underperform to Neutral and raised its target to $30, and several analysts raised forecasts or price targets after the upbeat quarter. These upgrades support further upside momentum. B of A Securities upgrades Tandem Diabetes Care (TNDM)
• Neutral Sentiment: FY‑2026 revenue guidance (~$1.1B) was reiterated/issued and generally in line with consensus — provides visibility but isn’t a clear upside surprise. Tandem Diabetes Care Announces Fourth Quarter and Full Year 2025 Financial Results and 2026 Financial Guidance
• Neutral Sentiment: New pay-as-you-go (subscription) model announced — could expand long-term addressable market and recurring revenue but timing and transition impact are unclear. Tandem stock rises on Q4 beats, new pay-as-you-go model
• Negative Sentiment: Analyst caution: UBS and other analysts maintained Hold ratings, flagging pay‑go transition uncertainty and competitive headwinds that could limit near-term upside — supporting more conservative views. Tandem Diabetes Care: Solid Q4 Beat Offset by PayGo Transition Uncertainty and Competitive Headwinds Supporting Hold Rating
• Negative Sentiment: Mixed price-target moves: some firms raised targets but others (e.g., Stifel’s $22 target) still imply limited near-term upside versus the current price, underscoring divergent analyst views. Tandem Diabetes price target raised by Stifel

Tandem Diabetes Care Company Profile

Tandem Diabetes Care, Inc (NASDAQ: TNDM), headquartered in San Diego, California, is a medical device company focused on the design, development and commercialization of innovative insulin delivery systems for people with insulin-dependent diabetes. Founded in 2006, the company introduced its first product, the t:slim® Insulin Pump, in 2011 and has since built a portfolio of next-generation pumps featuring touchscreen interfaces, remote software updates and integrated continuous glucose monitoring (CGM) capabilities.

The company’s flagship offering, the t:slim X2® Insulin Pump, is engineered to work with leading CGM sensors and features automated insulin delivery algorithms that adjust basal insulin rates based on real-time glucose trends.